Question

Patricia O'Malley purchased fifty $1,000 bonds having a quoted price of 99.75. She paid a 6.5% brokerage fee of the selling price). What was the total cost of the bond sale(to the nearest whole cent)?$53,116.88$54,024.65$55,346.77$58,021.99None of these choices are correct.

Answer 1

It is given that 50 bonds were bought with a cost of $1000 each.

6.5% brokerage was paid.

The total price of the share without brokerage is:

`C=50*1000*(99.75)/(100)=49875`

The brokerage is given by:

`B=49875*(6.5)/(100)=3241.88`

Hence the total cost of the sale is given by:

`\begin{gathered} T=C+B \\ T=49875+3241.88 \\ T=53116.88 \end{gathered}`

Hence the total cost of sale is $53116.88.